ASEP USA, INC. v. Cole

199 S.W.3d 369, 2006 WL 1228021
CourtCourt of Appeals of Texas
DecidedJune 1, 2006
Docket01-03-00816-CV
StatusPublished
Cited by14 cases

This text of 199 S.W.3d 369 (ASEP USA, INC. v. Cole) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ASEP USA, INC. v. Cole, 199 S.W.3d 369, 2006 WL 1228021 (Tex. Ct. App. 2006).

Opinion

OPINION

GEORGE C. HANKS, JR., Justice.

This is an appeal of the trial court’s award of $100,000 in damages plus attorney’s fees to Michael Cole following a jury trial of his breach-of-employment contract suit against his former employer, ASEP USA, Inc. (“ASEP USA”). In 10 issues, ASEP USA contends that the trial court erred in (1) denying ASEP USA’s second motion for partial summary judgment; (2) submitting jury question No. 1 and its accompanying instructions, overruling ASEP USA’s objection to this question, and confusing the jury with conflicting instructions; (3) failing to state the theory of recovery that underlies the final judgment, thus preventing ASEP USA from presenting an adequate appeal; (4) failing to enforce a Rule 11 settlement agreement that capped attorney’s fees; (5) awarding attorney’s fees, if the basis of the recovery was promissory estoppel; and (6) awarding attorney’s fees in the event of an appeal because there was no evidence to support these fees and the award was not conditioned on a successful defense of the judgment.

We reform the judgment to condition the award of attorney’s fees for the appeal upon a successful defense of the trial court’s judgment and, as reformed, affirm.

Background

Sietse J. Koopmans is the majority shareholder of ASEP Holding, BV, a privately-held Dutch company. ASEP USA, ASEP America, Inc. (“ASEP America”), ASEP Rentals, and ASEP Manufacturing are wholly-owned subsidiaries of ASEP Holding. In its 2001 corporate tax return, ASEP USA identified ASEP America as its parent corporation.

Koopmans first met Cole while doing business with Cole’s former employer. In June 2000, the two men executed a written employment agreement in which Koop-mans, in his capacity as president of ASEP USA, hired Cole to be ASEP USA’s general manager. The agreement provided that, if Cole terminated his employment, Cole was not entitled to any further payments. However, the agreement also provided that, if Cole was terminated by his employer, Cole was entitled to continue receiving his salary for one year. The employment agreement provided, in pertinent part,:

7.1 Employee shall have the right to terminate his employment with the employer under this agreement for any reason immediately upon written notice or oral notice to the employer. After the date of termination, no further base compensation of annual bonus will be due or payable to the employee.
7.2 The employer shall have the right to terminate the employment of employee under this agreement for *373 any reason immediately upon written notice to employee. The employer shall continue to pay employee his base compensation for one year after the date of termination.
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10.3 This agreement may not be amended orally, but only by an agreement in writing executed by employer and employee.

(Emphasis added.)

In April 2001, as one of his functions as general manager, Cole executed a client service agreement with Administaff in which Administaff agreed to provide personnel management services to ASEP USA. Cole then signed an employment agreement with Administaff as an individual employee of ASEP USA. This employment agreement provided that the “Client Company” (ASEP USA) and Administaff had agreed to a “co-employment relationship” but that the agreement dealt only with Cole’s employment with Administaff. It further specified, “Termination of this Agreement may not necessarily terminate your employment with Client Company.” In addition, the agreement provided that it did not alter the employment agreement Koopmans and Cole had executed. The agreement provided, in pertinent part,:

13. ENTIRE AGREEMENT. This Agreement supersedes any and all other Agreements between Admin-istaff and Employee, either oral or in writing, with respect to the employment of Employee by Adminis-taff and contains all the covenants and Agreements between the parties with respect to such employment in any manner whatsoever and in no way creates or alters any separate agreement Client Company [ASEP USA] may have with Employee.

In his role as ASEP USA’s general manager, Cole also undertook financial and administrative responsibilities in regard to the other ASEP entities, including ASEP America. The various ASEP entities were housed in one facility, shared common employees, shared common offices, had a centralized accounting system, and used Ad-ministaff to handle personnel management.

In October 2001, Cole left his position as general manager of ASEP USA and assumed the position of Vice-President of Finance & Administration of ASEP America. The personnel form that accompanied this change is entitled “Employee Change of Status Notice.” The form identifies Cole, states his new job title, and shows a new location (“moved from USA to America”). Cole also moved to a new office in the same building at the time of this change.

On January 3, 2002, Koopmans sent a letter to Cole terminating Cole’s employment for cause, citing Cole’s “failure to perform your duties under the employment agreement.” The letter closes, “Please consider this termination to be effective immediately ...” and is signed by Koopmans as “President of ASEP USA Inc. by ASEP Holding B.V.” The accompanying Administaff form, completed on January 9, 2002, is entitled “Employee Termination” and shows that Cole’s employment was terminated on January 3, 2002 from ASEP America for unsatisfactory job performance. His employment was simultaneously terminated from Administaff.

When Koopmans refused to pay Cole’s one-year compensation in accordance with the employment agreement, Cole sued ASEP USA for breach of contract, fraudulent inducement, fraudulent misrepresentation, promissory estoppel, and negligent *374 misrepresentation. After both parties filed motions for summary judgment and after the trial court denied these motions, the case was tried to a jury.

At the charge conference, ASEP USA objected to all five of the trial court’s proposed jury questions. The trial court overruled these objections. After deliberations, the jury made the following findings pursuant to the court’s charge:

QUESTION NUMBER 1:
Did ASEP USA, Inc. fail to comply with the written agreement signed by the parties [ASEP USA and Cole] dated June 13, 2000?
In order for you to answer “yes” to this question, you must find that the written agreement remained in full force and effect between October 6, 2001 and January 3, 2002.
Answer: [Yes]
If your answer to Question No. 1 is ‘Tes,” then please answer the following question. Otherwise, answer Question No. 3.
QUESTION NUMBER 2:
What sum of money, if any, if paid now in cash, would fairly and reasonably compensate Michael D. Cole for his damages, if any, that resulted from such failure to comply?
In answering questions about damages, answer each question separately.

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Bluebook (online)
199 S.W.3d 369, 2006 WL 1228021, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asep-usa-inc-v-cole-texapp-2006.